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Business gateway - Business terms
Category: Business and Law > Business
Date & country: 21/01/2010, UK
Words: 389

Account sales
A term used when goods imported on consignment are valued for customs purposes by reference to the price they achieve when sold in the European Union (EU). Account sales commonly apply to importations of perishable goods.

Accounting Standards Board (ASB)
Produces formal statements of accounting standards that apply to all companies.

Accounts payable
Money owed by a company or individual for the goods or services they have received.

Accounts receivable
Money owed to a company or individual for the goods or services they have provided.

Additional premium
A premium payable by the insured as a result of a change in policy cover or declaration adjustment to reflect increased exposure or sums insured.

A person who investigates claims on behalf of insurers.

Insolvency practitioner holding office in administration.

Advising bank
Bank operating in an exporter's country that handles letters of credit (see Letter of credit) for a foreign bank by notifying the exporter that the credit has been opened in its favour. The advising bank lets the exporter know exactly what the conditions of the letter of credit are but isn't necessarily responsible for payment.

Aggregate limit of indemnity
The maximum amount an insurer will pay under a policy in respect of all accumulated claims arising within a specified period of insurance.

Agricultural component (AC)
A Customs (import) charge applicable to goods processed from certain basic agricultural products.

Airport of receipt (AOR)
The cargo community system (CCSUK) airport at which a transit shed operator creates a consignment record for uncleared imported goods.

Additional Maternity Leave

The writing off of the cost of goodwill or other intangible assets over a period of time.

Annual General Meeting (AGM)
Annual meeting of company shareholders where the financial statements for the previous financial year are presented. AGMs can also be used to appoint directors and auditors and allow shareholders to ask board members questions.

Association for Payment Clearing Systems -A non-statutory association of major banks and building societies. Its function is to manage the main networks which allow banks and building societies to exchange payments on behalf of their customers.

Approved Supply List
The Approved Supply List contains many commonly used hazardous substances. Suppliers must identify these substances with a warning label and provide you with a safety data sheet.

Articles of Association
Set out the main rules for the way a company is to be run. Statutory Tables A to G set out what the articles should cover. Table A acts as the default for all companies limited by shares.

Asian dollars
US dollars deposited in Asia and the Pacific Basin.

Asset cover
The ratio of net assets to total debt. Used by banks to judge the security of lending.

A term interchangeable with insurance but generally used in connection with life cover as assurance implies the certainty of an event and insurance the probability.

Audit report
The result of the review of the annual accounts by the auditors. It must accompany the accounts when filed at Companies House. An unqualified report means that the auditors found nothing wrong with the accounts. If the auditors are concerned that the accounts are not a true reflection of the state of the company the report will be qualified by thei...

Accountants appointed to review and report upon the annual accounts of a company. Only accountants qualified as members of one of the professional bodies recognised by legislation can act as auditors.

Authorised operator
A trader authorised by HM Revenue & Customs (HMRC) to operate one or more simplified export procedures: simplified declaration procedure (SDP) and local clearance procedure (LCP) and/or a designated export place (DEP). It also includes an exporter or third party allowed to make full export declarations to the Customs Handling of Import and Export F...

Balance sheet
A financial statement at a given point in time. It provides a snapshot summary of what a business owns or is owed (assets) and what it owes (liabilities).

Bank giro credit
This is the most common form of paying money into a bank account or making a transfer from one account to another.

Banking Code
The voluntary code followed by banks and building societies for consumers in the UK. The Code sets minimum standards for good banking practice. Banks and building societies in the UK subscribe to the Code.

A debtor that is judged legally insolvent. A person can become bankrupt upon voluntary petition or one invoked by their creditors. The debtor's remaining property is then administered for the creditors or is distributed among them.

Base rate
The interest rate set by the Bank of England which is used as the basis for the rates banks offer and charge customers.

Best Available Techniques Not Entailing Excessive Cost -Best Available Techniques Not Entailing Excessive Cost must be used by businesses regulated under Integrated Pollution Control (IPC) and Local Air Pollution Control (LAPC).

Binding European retrieval of Tariff information -The correspondence handling and management system used by the Tariff Classification Service. It is used to produce binding Tariff information classification decisions for issue to importers and exporters and liability rulings for issue to Customs staff.

Best Available Techniques (BAT)
Best Available Techniques must be used by businesses regulated under Pollution Prevention and Control (PPC) to ensure that pollution is avoided.

British International Freight Association -Body representing the UK international freight services industry. British International Freight Association (BIFA) can provide you with a list of freight forwarders and customs clearing agents.

Bill of lading (B-L)
Document generally issued by a carrier which acts as a receipt for goods received for carriage. In addition it provides evidence of the terms of contract between a shipper and a transport company under which goods are moved between specified places for a specified charge. A bill of lading can also act as a transferable document of title to goods - ...

A method of connecting mobile electronic devices that uses radio waves without the need for cables.

Border inspection post (BIP)
Control point at the place of importation into the European Union (EU) where products of animal origin (POAO) and live animals are subject to the veterinary checks regime.

Breach of contract
Failure by a party to a contract to uphold their part of the deal. A breach of contract will make the contract void or voidable.

British Chamber of Commerce (BCC)
An organisation comprising a national network of local chambers of commerce spread throughout the UK. There are also a number of British chambers of commerce in other countries. Chambers of commerce provide a range of business services for members.

Any system of connection to the Internet that is characterised as high-speed - ie can carry data at speeds of more than 128kbps.

Software that enables users to search and view information on the Internet.

A mistake in a computer program that results in the program or system not working correctly. Later versions of the program typically contain corrections or fixes.

A third party providing a service to National Export System (NES) authorised traders to act as their direct representative for the submission of pre-shipment and supplementary declarations.

Business Angels
Individuals who invest their money in growing businesses with the expectation of a high return on that investment.

The funds in a business contributed by its owners.

Capital growth
This is the rise in the value of an initial investment and any income that has been added to it.

Cargo Community System (CCS-UK)
The computerised cargo processing system that controls goods in an inventory linked environment. It consists of a central database and a 'switch' to transfer messages between the various computer systems connected to it.

Customs document which allows you to carry or send goods temporarily into certain countries for display or demonstration purposes without paying duty or posting a bond.

Cash in advance (CIA)
Full payment for exported goods before shipment is made.

Cash with order (CWO)
The buyer pays for goods when ordering. The transaction is binding on both supplier and customer.

Caveat emptor
Buyer beware. In contract law it is generally up to the buyer to find out if what they are buying is what they want. Consumer regulations require certain information to be disclosed to buyers and insurance contracts are covered by the uberrima fides (utmost good faith) - but many types of business contracts are covered by the caveat emptor rule.

Central processing unit (CPU)
The electronic chip at the heart of your computer.

Certificate of inspection
Document certifying that certain types of goods (such as perishable items) were in good condition before shipment.

Certificate of insurance
Shows insurance cover has been arranged for goods being transported. It should detail the degree of cover and list the policy number and all other relevant details.

Certificate of manufacture
Statement (often legalised by a notary) in which a producer of goods certifies that manufacture has been completed and the goods can be bought.

Certificate of origin (C-O)
Statement on the origin of goods. You may need one if you're exporting to a number of countries. They're available from your chamber of commerce for goods of European (EU) origin.

Clearing house automated payments system -An electronic system allowing the payment to go from the paying bank to the receiving bank on the same day.

Customs Handling of Import and Export Freight -HM Revenue & Customs (HMRC) computerised system for processing import and export declarations.

Convention International Merchandises Chemins de Fer -International rail carriage receipt. This document confirms that the rail carrier has received the goods and that a contract of carriage exists between trader and carrier.

Convention on International Trade in Endangered Species -Regulatory body which oversees the international movement and trade of endangered species.

Injury or loss to a claimant against the insured arising so as to cause liability under an arrangement policy.

Goods are cleared when HM Revenue & Customs (HMRC) have accepted a declaration for them and formally released them for import or export.

Combined Consignment Note and Customs Declaration -A single document which serves as both a Customs declaration and a consignment note. The CNCD is used for traffic to and from the Channel Islands.

Collateral contracts
Secondary or minor contracts that support a main contract. Usually a collateral contract will be created where a promise is made or guarantee given by one party to persuade the other party to enter into the main contract.

Combined Heat and Power (CHP)
CHP installations generate power (in the form of electricity) and heat (usually in the form of steam or hot water).

Combined Nomenclature (CN)
The European Union (EU) system for classifying and defining goods. It is based on the Harmonised System (HS) and is laid out in the Tariff.

Comfort letters
Documents issued to back up an agreement but which do not have any contractual standing. Often issued by a parent or associate company to state that the group will back up the position of a small company in order to induce another party to trade with it.

Commercial agent
Person or organisation appointed by exporter to sell goods on their behalf in return for commission.

Commercial invoice
Bill listing the goods and prices shipped by an exporter.

Common stock
The storage or mixture of goods which have been imported under a relief eg end-use relief or inward processing relief (IPR) with other goods that share the same commodity code to eight digits and the same technical and physical characteristics.

Common transit (CT)
Used to describe community transit (CT).

Community systems provider (CSP)
A company or organisation providing a system that supports a network of trade users and provides human computer interface (HCI) usually within a seaport or airport.

Community transit (CT)
A documentary system of controlling the movement of certain goods across the territory of the European Union (EU).

Company secretary
Appointed by the director/s. Responsible for ensuring that the legal obligations of the company are met. In a public company they must be suitably qualified so will usually be a solicitor or an accountant. They can be a director and their general responsibilities are set by the directors though they have specific responsibilities laid down in legis...

Company share option plan (CSOP)
Company policy giving employees the right to buy a certain number of company shares at a fixed price at some point in the future.

Compensating products
All products obtained from inward processing relief (IPR) processing operations.

Compensatory interest
Interest charged by HM Revenue & Customs (HMRC) when inward processing relief (IPR) suspension goods are diverted to free circulation.

Contracted out money purchase stakeholder pension scheme -An occupational pension scheme that operates on the same basis as a COMP but with stakeholder status.

Major terms in the contract. Conditions form the basis of the contract and if one of them fails or is broken the contract is breached. Conditions contrast with warranties - the other type of contract term - which are less important if broken.

Confidentiality agreement
An agreement which is made during negotiations for a larger contract and which covers confidential information belonging to the parties. During negotiations the parties may need to divulge information about their operations to each other and the confidentiality agreement forms a binding contract not to pass on that information whether or not the ac...

Consignment record
The record of an import or export consignment held on a computer inventory system.

Duty suspension - the authorised person from whose premises goods are dispatched in duty suspension.

The packing of goods for transport in sealed containers.

Content management system (CMS)
A system used to manage the content of a website or intranet. Typically a CMS allows staff to amend and add information and content to a website using a set of templates without the need for specialist knowledge of HTML or other web-authoring software.

Convertible currency
A currency that can be bought and sold for other currencies at will.

Debt lending which can be converted into equity under certain circumstances.

A deed that conveys property rights.

Corporation tax (CT)
A tax paid by companies on profits and termed gains.

Correspondent bank
Bank that handles in its own country the business of a foreign bank.

Control of Substances Hazardous to Health Regulations 2002 -COSHH requires businesses to take steps to control the risk of hazardous substances to employees.

Countervailing charge
A charge which may be imposed by the European Commission (EC) either on certain goods from specified European Union (EU) member states during some months of the year or as part of a minimum import price system.

A promise within a contract for the performance or non-performance of a specified act.

In finance these are conditions imposed on loans and bonds to protect lenders against default.

Credit-risk insurance
Insurance for exporters designed to cover risks of non-payment for delivered goods.

An individual or company who is owed money.

A computerised system for settling sales and purchases of shares in the UK.

Custom and practice
In some industries there are trading terms or practices which have become established as normal and these are implied into a contract as custom and practice unless the contract actually states otherwise.

Customs action code (CAC)
A code which indicates the action taken by Customs on either an entry or a request for removal.

Customs and excise warehouse
A warehouse separately approved for the deposit of goods liable to customs duty and excise duty.

Customs procedure code (CPC)
A six digit code used on entries at import and export to identify the type of procedure for which the goods are entered and from which they came.

Customs registered number (CRN)
Customs Registered Number - a unique 5 digit number assigned by HM Revenue & Customs to an exporter or agent approved to use one or more of the following export procedures: Simplified Clearance Procedure (SCP); Local Export Control (LEC) and Period Entry.

Customs release
The approval given by Customs that authorises a transit shed operator to deliver goods from the transit shed subject to such conditions the commissioners may impose.